What does TILA stand for?

TILA stands for the Truth in Lending Act. This legislation was enacted to promote informed consumer credit decisions by requiring clear and comprehensive disclosure of the terms and costs associated with credit. Under TILA, lenders must provide borrowers with key information, including interest rates, finance charges, annual percentage rates (APRs), and other important loan terms, allowing consumers to make informed comparisons between different lending offers.

The importance of TILA lies in its role in protecting consumers from misleading lending practices and ensuring transparency in credit transactions. By mandating specific disclosures, TILA helps to facilitate a better understanding of borrowing costs and obligations, ultimately empowering consumers in their financial decisions.

The other options do not represent the official title of the legislation and reflect inaccurate interpretations of the act's purpose and structure.